ITC Report: China's Ineffective Piracy Policies Cost Americas Millions of Jobs

Paul Lilly

In a new report, the International Trade Commission called out China for its rampant piracy problem and "indigenous innovation policies" for costing the U.S. economy up to $48 billion in 2009. The report also blames China for costing Americans 2.1 million full time jobs that would otherwise be created if China substantially improved its intellectual property rights policies.

The ITC report confirms what the software industry has long known: The Chinese practice of ignoring the intellectual property rights of US innovators harms our nation, puts a drag on our economy and siphons jobs away from Americans," said Business Software Alliance President and CEO Robert Holleyman , who testified before the ITC during its investigation. "The report establishes in clear terms that these practices harm every innovative American industry. We look forward to working with the Senate and the ITC to find meaningful and effective ways to preserve the rights of American innovators in international markets."

But are the numbers accurate? TechDirt took serious issue with the ITC's "ridiculous" and "dopey" methodology.

"Rather than taking any sort of actual objective study, the ITC simply asked 5,000 companies for what they thought their 'losses' to Chinese infringement were," TechDirt complains. "Not only that, but the ITC tried to choose the firms who were most likely impacted by this -- which means those who have the highest incentives to lie or exaggerate, because they want to have greater protectionism against Chinese competition."

You can read the entire report here (PDF) .

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